Why do we need CBAM?

Описание: The EU’s Carbon Border Adjustment Mechanism will begin to be phased in starting from 2026, with the transition period kicking off in October 2023. CBAM will make imports to the EU from other parts of the world subject to a kind of carbon tax.

CBAM was introduced to allay EU manufacturers’ concerns about unfair competition from parts of the world with less stringent carbon pricing policies. In addition, CBAM is meant to set off a virtuous cycle in which partner countries are encouraged to decarbonise.

There are some shortcomings of CBAM that need to be addressed. Foremost among them are two issues: the period during which free allowances will still be issued to EU industries and the fact that the revenue raised by CBAM will not go to vulnerable partner countries but will be injected into the EU budget.